Socio-economic characteristics of registered cocoa farmers in Edo State, Nigeria

C.O Osarenren,K.I Eweka,J.O Ejuetueyin

doi:10.4314/jasem.v20i2.5

Abstract

This study examined the socio-economic characteristics of registered cocoa farmers in Edo State; Nigeria. Primary data was collected using a well structured questionnaire administered to 180 registered cocoa farmers selected using a multi-stage sampling technique. Data were analyzed using descriptive statistics and budgetary technique. Results showed that 88.9% of cocoa farmers were male with a mean range of 46 years with 75% being married and 88.8% having formal education. The budgetary technique was used to determine the profitability of cocoa production, which was found to be profitable in the study area at a gross margin of N66, 350, Net Farm Income of N59, 200, and net return on investment of N 1.11.The Benefit Cost Ratio and Expense Structure Ratio of 2.11 and 0.12 respectively indicated that cocoa production was economically profitable and viable since the BCR is greater than 1 and the Gross Ratio (GR) of cocoa production is 0.47. From these profitability ratios, it shows that cocoa production is a profitable business in the study area. Inadequate finance to operate on large scale was found to be the major constraint to the cocoa farmers in the study area. The study concludes that cocoa production is profitable and was recommended that production could be improved and sustained through provision of soft loans to the farmers.Keywords: socio-economics, characteristics, registered cocoa farmers

Highlights

Cocoa product is highly valued by most farmers in Edo State as it provides them with the means of earning a living
Nigeria has the potential to produce over 300,000 tons of cocoa beans per year, but production only amounted to 145,000 tons in 1999 (Nigeria Agriculture Stats, 2014)
The study seeks to answer the following research questions; what are the socio-economic characteristics of the cocoa farmers in the study area? How profitable is cocoa production among registered cocoa farmers in Edo State? Do the cocoa farmers face production challenges? The objective of this study was to examine the socio-economic characteristics of registered cocoa farmers in the study area with a view to finding ways to sustain the increase in cocoa production for food security and income generation

Summary

Introduction

Cocoa product is highly valued by most farmers in Edo State as it provides them with the means of earning a living. Cocoa is an international commodity which has played a pertinent role in the economies of the countries mostly the developing countries in Africa. It is traded in the international exchange market in two world currencies; the Great Britain Pounds and the United State Dollars (WCF, 2009). Cocoa farmers worldwide depend on cocoa for their livelihood with an annual world production of three million tonnes (WCF, 2009). Nigeria has the potential to produce over 300,000 tons of cocoa beans per year, but production only amounted to 145,000 tons in 1999 (Nigeria Agriculture Stats, 2014). Each hectare produces 300 to 400 kilograms of cocoa beans in Africa and about 500 kilograms in Asia. Yield per hectare varies by region, and by country and by type of cocoa (WCF, 2014)

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Conclusion